News

Rumours are circulating that NAV CANADA and the NAV CANADA Bargaining Agents Association (NCBAA)  have reached an agreement to change the NCPP which would bring an end to guaranteed indexation.  No such agreement has been reached to date and even one existed, it would require a vote of all of NAV CANADA represented employees. However, rumours do not exist in a vacuum so allow me to provide some background on the subject which will help put them in context.

For some time now, NAV CANADA has been engaged in discussion with the NCBAA about changes to the pension plan including indexation.  The ultimate goal of these discussions has been to solve the ?pension problem?. The ?pension problem? is the volatility of the solvency liabilities and associated contributions NAV CANADA is required to make.

The guaranteed indexation benefit coupled with the funding regulations simply don?t work for a company structured like NAV CANADA.  These regulation cause the pension plan?s solvency liabilities to be unnecessarily volatile.  This forces NAV CANADA to make pension contributions which may never be required thereby trapping capital which could be used for other purposes. Attempts to get the regulations changed have been unsuccessful.  This has been discussed openly by representative of both the union and the company.  Furthermore, members should expect NAV CANADA to continually raise the issue either through the NCBAA or at the bargaining table.  The subject isn?t going away anytime soon.

With respect to any proposed changes, members can expect to receive more information if and when something concrete and presentable is finalized. Given the seriousness of the subject and its far reaching impact members can also be sure they will receive a great deal more information if an agreement in principle is ever reached.  In the end, the members will have the final say on any changes.

There is no easy way to talk about something  as important as a person?s pension benefits particularly when it comes to guaranteed indexation.  But like every negotiation, such discussions also create opportunities for changes in other areas which may lead to improvements. Members are urged to keep an open mind while the discussions continue.

In Solidarity,

Daniel J Boulet
Business Manager / Financial Secretary